Reminds me of something Mike Murphy said about Trump in the aftermath of Jebâ€™s collapse. The logic in favor of nominating another Bush was always, er, complicated, but the logic against nominating a loose cannon is straightforward.

Iâ€™ll bet even Murphy didnâ€™t think Trump would advertise the possibility that Americaâ€™s creditors might not receive payment in full in a Trump administration. Choose your own preferred term for what heâ€™s recommending here â€” renegotiation, bankruptcy, default.

Greece ran high trade deficits too. Until their unemployment reached so high that nobody could afford the imports. Then Greece’s trade deficits fell. They were left with no industries, no jobs, no money, and a lot of debt.

And the true problem is that we are in THAT much trouble, financially. The current administration, and one just like it (ie clinton or sanders) CAN’T dig us out.

The only one who can even come close, AND who is willing to put his neck on the line to do it, is Trump. Oprah has a lot of money, do you see HER up there trying? Nope. How ‘bout the Krotch brothers? nope. Warren Buffet? nope. Anyone else? Nope.

obama added to the problems by importing more people for us to have to support when we can barely support ourselves. Combined with jobs taking an over seas powder, leaving low level, low paying jobs isn’t helping. Regulations that protected big business while squashing new businesses aren’t helping. After the big businesses received their protection, they ditched us for someone else.

I’m sure as time goes on that we’ll find out all sorts of nasty deeds we know nothing about right now.

Not to mention all the wars which have been draining us and for which we got no booty.

Mr. Pundit gives lip service to recognizing that Corporate CFO's regularly buy back debt instruments at a discount, but fails to recognize that the procedure is perfectly respectable in dealing with Government debt issues. Government debt can certainly trade at a discount, Mr. Pundit is simply confused. Donald Trump is not in the least confused.

As for the idea that the United States does not default on its debt? I suggest that Mr. Pundit look at the history of U.S. Debt repayments (in real terms) since 1933:

If the cure is to default on our debts, be prepared for soaring interest rates and a devalued dollar. It would undermine confidence in the worlds most trusted financial asset — our currency.

Even a partial default would mean that tax dollars would have to go toward repaying the debt.

Of course, Many investors would shift their money elsewhere. And the economy could endure a traumatic blow.

And if you have a conservative 401K that invests in treasuries ( as most of those who are close to retiring have ), your portfolio will be devastated.

This will also be historically unprecedented. The move would end a policy introduced during the presidency of George Washington  and celebrated in the Pulitzer Prize-winning Broadway musical Hamilton” to pay full face value on the debts incurred by the country.

The governments unfailing payments of its debt have long pleased investors and supported the economy because the country can borrow at lower rates than it otherwise could.

Defaulting on our debt would cause creditors to rightly question the full faith commitment we make.

If anyone thinks that America ever planned on repaying all our debt is nuts. The plan was to print money and have low interest rates, thereby causing
Inflation and a lower dollar. What they didn’t count on was that the rest of the world was in worse shape and devalued their currency better. And the low interest rates didn’t produce the growth they expected either.

The government runs an annual deficit, so it must borrow to retire existing debt

This isn’t the same as refinancing where you pay off one loan by creating another loan. The government borrows money but it does NOT retire the existing debt. It borrows money to pay the interest. And as long as we’re doing that our creditors are happy as can be. But the loan is never paid and we go deeper and deeper into debt.

It may be time to start taking some drastic steps.

19
posted on 05/06/2016 1:28:15 PM PDT
by VerySadAmerican
(Never held a job in the private sector;never met a payroll,never created a job - CRUZ! Conservative!)

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